Case-study/Project
Browse the internet for extra information and make a 5-min presentation in class on one of the issues below:
One-stop-shop;
Single Window;
Revised Kyoto Convention.
Self-assessment grid
| Tick (✓) Yes or No answers in appropriate columns and lines to self-assess your knowledge and skills. | Yes | No |
| I know: | ||
| - the topical vocabulary Customs automation; | ||
| - what international organizations promote trade facilitation; | ||
| - why it is important to automate customs processes; | ||
| - the levels of automation of customs processes achieved in different countries; | ||
| - what is to progress from Vertical integration to Horizontal Integration; | ||
| - the difference between the simple and perfect tense meanings. | ||
| I can: | ||
| - use perfect tenses in proper language contexts; | ||
| - choose proper words while speaking on the problems of automating customs processes; | ||
| - render Russian texts in English using the appropriate grammar and vocabulary; | ||
| - speak on the topics related to e-customs; | ||
| - search the Internet for extra information about one of the issues (One-stop-shop, Single Window or Revised Kyoto Convention). | ||
| Total number of positive/negative answers: | ||
Module 1 4
Pre-reading issues
1. What is risk?
2. What possible risks can Customs face?
3. How can risks be prevented or managed?
Risk management in customs procedures
In an effort to achieve an appropriate balance between trade facilitation and regulatory control, customs administrations are generally abandoning their traditional, routine gateway checks and are now applying the principles of risk management with varying degrees of sophistication and success.
Organizational risk refers to the possible events and activities that may prevent an organization from achieving its objectives. Customs risks include the potential for noncompliance with the customs laws as well as the potential failure to facilitate international trade. Customs, like any other organization, needs to manage its risks and do so while interfering as little as possible with the flow of legitimate trade. There clearly is a trade-off between control and trade facilitation. Too much of one makes it difficult to achieve the other. Customs therefore needs to apply a set of management procedures that takes this into account. These procedures include the identification, analysis, evaluation, and mitigation of the risks that may affect the achievement of these objectives.
Basic risk management has always been fundamental to customs operations, and has guided the formulation of anti-smuggling policies, the functioning of border controls, to verify the movements of goods and passengers, and the establishment of documentary controls and physical inspection procedures. However, in recent times the increasing complexity, speed, and volume of international trade, fueled by technological advances that have revolutionized global trading practices, have significantly affected the way in which customs authorities implement risk management. This has led many customs administrations to adopt a more disciplined and structured approach to managing risk.
|
|
|
Customs needs to evaluate the risks that are presented by the nature of its operations. This includes the need for the Customs to review its operational procedures and assess where breaches of procedures are likely to jeopardize the attainment of stated objectives. In other words, Customs needs to provide a risk map that identifies the potential vulnerabilities of its processes and to determine how its procedures may need to be geared toward ensuring better realization of its objectives.
(From: Customs modernization handbook)
Text comprehension
1. Why are customs administrations abandoning traditional checks and applying risk management?
2. What does organizational risk refer to?
3. What do customs risks include?
4. Does Customs need to manage its risks?
5. Why should there be a trade-off between control and trade facilitation?
6. What risk management procedures does Customs need to apply?
7. Why has basic risk management always been fundamental to customs operations?
8. What has led many customs administrations to adopt a more structured approach to managing risk?
9. How can Customs evaluate the risks that are presented by the nature of its operations?
10. Why does Customs need to provide a risk map?
